We he as we talk about companies that should be on your radar. Next week is monster reporting hi, carter, who is charting the action it was a big week for rates and areas of the market benefit from that. Most notably banks and other financials, but lets look at a handful of charts. The first i have is the tenyear yield chart. What you see is that for the first time in almost two years the moving average is flat and on the cusp of turning up. The point of a moving average, when you break above a trend or you can measure it and the automated average is a trend line, the trend is measured by the Inflection Point we have that by all accounts in tenyear yields. And the second chart is the same circumstance the moving average has been declining for sometime and is now declining and deflecting upward next, same circumstance. Do all turns persist could these faith and turn back . Sure. Most had earnings last week and didnt do that well, but the rate move has helped this area we think rates go higher, banks in particular. This is where we are now in relation to the june high. We are at about 1. 65 and went as high as 1. 76 we think we will go as high as 1. 76 for 30year yield for 10year yields we are sitting here at 85 basis points and june high, almost 1 look at the kre and bkx were we to go back to the first week of june, we are looking at a good move, roughly 10 to 12 in both. So whether you call it cyclical or defensive or growth or value, what we do know is that they are important turns having been lag guards. So what does this mean . Steve, in general, rising rates should be a good thing, but in more recent history it has been a bad thing for the market it is not a good thing for technology stocks. Never buy technology in a rising rate environment you want to buy cyclicals. As carter left it off you can call it cyclical, value. When you are looking at the president ial election, if you look at a biden win, could you see where the polls started to increase for biden then you saw rates start to increase thats the reflation when you see these rumors about massive spending, it makes people get out of bonds or treasuries they sell them and then the rates move higher from there you cant pass on costs in technology thats why you dont want to be there. So you want to be in the things that have not worked thats why you have seen those things outperformed. Ke chemical names, industrial stocks, these things are up 10 in short order we see 1 , as carter is forecasting, what does the stock market do . I think the stock market can hang in if we see one percent. Then you turn back the other way. I dont think the message from rates has changed that much. When you think about yields and growth expectations plus growth expectations, i think the move we have seen so far is term premium. You are seeing a high correlation between a democratic sweep and a tenyear treasury yield. The term preemie has increased it hasnt been growth or Inflation Expectations i think the increase in term premium is hard to sustain treasuries are at their cheapest on a yen basis it puts pressure on the yields, flattens the curve so i think that might be the situation we are in. Until the point it reverses, in it goes higher. Would you a buyer of the banks on this anticipated move higher from where we are . Yeah. I have been pretty bullish when it comes to the tech names but i would take a second look especially at the regional bank. Regional rates might see a push higher thats something you would want to take a look at. Also, the bigger banks, having Strong Division outside, so taking a second look at banks is something i will do and driven primarily on if this trend can hold i think thats what we will be looking at Going Forward victoria, does it be that the economy has to improve or could it be that rates rise and we are in this weird situation where we are issuing a lot of deck where we are pumping stimulus because the economy has stumbled is that still a decent dropback for banks . I think the immediate thing for banks is the stimulus. When you look at the yields, it is about a 40basis point range. If you add that, i think you get to 1 1 4 high. Thats not going to be enough for the Federal Reserve to change anything they have been doing. So you are going to have low rates down to zero on the short end and have a steeper curve i think the bank having the backstop, which it looks like it might be a larger stimulus package after the election, that will be enough of a foundation to keep the long end going higher its good for banks and i think for the fixed income investors they have been waiting to jump back in at higher yields so the redhot housing trade, does that come to a halt or at least a pause as you see rates move higher . The tenyear on a yield basis increased by 44 from september so just a month ago. We have seen a stock like lennar which i have been in and out of at 20 i dont think it will kill the housing trade. Covid is creating the housing boom everyone is moving out of city areas. Not enough housing out there there are multiple dynamics that have created the housing boom, but it is not singularly based on rates anymore by the way, i am going to drop that school. I am going to say put on my mit hat, but its jeff mills hat. Even though you have no tie to mit what is the point of going there if i cant talk about it we are following a developing story in the after hour session in the race for a covid vaccine. Details next it was a big afternoon about covid vaccines both as zen ka and johnson and johnson said their vaccine trials are resuming in the United States. They had been put on hold. Going back to september after some events in the trial, they said the fda reviewed all data and said it is safe to resume the trial. They said they expect the trial later this year. The company is saying its ready to resume recruitment in the United States and thats after independent data and safety board recommended resuming the trial in consultation with the fda. They say no clear cause has been identified the Company Found no evidence that the vaccine candidate caused the event the Company Going further and saying they dont know if the participant was on the vaccine or placebo but we would assume if it was on the placebo we could have known sooner it took about 10 to 14 days. They still hope to get data by the end of the year remember, this trial only requires one shot of the vaccine versus all of the others in the leadup which require two shots so they should be able to garner data faster in the trial and there are 60,000 people around the world. He said because we are seeing these terrible spikes in cases, they might get data faster this is the First Company that President Trump mentioned last night at the debate even though it was on pause at that point. Interesting development. One question for you, the biggest vaccine trade would be what and it doesnt have to be a vaccine maker. If there is a vaccine, which stock sector would have the biggest upside very broad, but i think it is the value growth trade what we have seen in the he c equity market is with things like vaccine small caps have been ripping, copp copper versus gold if you get more optimism about a vaccine, you see a more sustainable rotation into value because people assume we can go back to normal a bit more quickly and the economy is on more stable footing. Especially because you have such evaluation difference in the market, i think there is an opportunity for big moves on both sides we are getting ready for the busiest week of this earnings season what traders are watching and how you should position yourself and later, check out this monster move isnn ap we will look at it and some other big movers flexshares may look like other etfs. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. 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Welcome back we are gearing up for a huge week of earnings so we thought it would be a good time to play trade it or fade it pfizer, the Pharmaceutical Company still negative for the year as the Company Works toward a vaccine. I would trade it. I have been an owner of pfizer for years. Thats the only reason why i feel the need to say trade it. I dont want to confuse the viewer if i am looking for a short time horizon, all of these trades are lower than july. That means they are running out of momentum. That means its buy the rum mor sell the news. Thats not confusing. Trade it or fade it . We are going to trade ups the changes we have seen to behavior is a one time boost to online ordering, perhaps it is not a name you want to get involved with. People are ordering everything online and having it delivery, whether groceries, school supplies, clothing so we think ups longer term has good potential you might get a slight pull back on earnings that allows you to get in at a better price boeing is down nearly 50 this year. Trade it or fade it . Fade if it has been stuck at that moving average for months moontsd months and months. You heard the ceo talking about it will be a long road back to normal specifically talking about Business Travel. Boeing continues to push back the time deadline. If i wanted to get exposure in this space, i still like southwest. The chart is showing good momentum here. Exposure to Business Travel and International Travel i think is better than some of the other carriers so i would stick there rather than boeing. Finally, apple up nearly 57 this year as itgoers up to launch the iphone 12 i am going to trade it. Every time i get a new apple product. I always have to use it. I have seen a pullback and i think investors are taking gains off the table. I think its going back to the power of apple some of the things Going Forward, as iphone 12. And they are consistently giving people a reason to be into the stock. Coming up, cars, clothes and cameras. Why these names could deserve a full blown rerating. And later we have our head in the cloud. We started goodrx in 2011 because too many people in the United States cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Lets meet the candidates gap jumping after announcing big store closures and gm jumping with announcement of the ev hummer lets kick off with the gap. Is this a turn around taking hold old navy is a Good Business because most of them are located outside malls. Unfortunately, there is too much in that sausage to be a buyer of this i think occasionally you can get some of the parts and i understand why it rallied, but longer term, stores are located all over the place, too much going on, too much room for seller victoria, which stock do you think deserves a rerating. Probably snap out of the ones we talked about here i agree with steve on gap. I am not sure they deserve that yet. They are saying athletic and old navy will be 70 of their sales and that was the key on them they have this venture with major league baseball. Their ad business is doing well. My teenage daughter, thats the only way she communicates with herfriends if any of these are going to have a rerating, i think snap is where that would happen. Which one do you like i like gap for the rerating when they had the power plan, they did all of the things that investors were looking for, shareholders were looking for. They talked about putting their shift behind ecommerce. These are signs investors were looking for. And fixing their real estate issues in phasing out of falls athlet brand, it has high marks. They are key on the fact they understand where we sit, where we will all be working from home, that leisure wear is important. I like that and thats where my rerating is. I can jump quickly and talk about gm we havent mentioned that. I buy the rerating story there i think at eight times forward earnings the stock might be too cheap. When you think about what they have announced as far as investing billions of dollars into the ev space, i think there is an opportunity for them we see multiples that Companies Like tesla carry into the space. I think they carry a higher multiple i would watch that 40 it hasnt been able to hold that level for a long time. If you see it above that, then its time to buy it. Jeff . I lean his way, but what are you going to equate snap to i think gm is outperforming ford maybe they get tesla shine leaning their way. Time for the final trade i am going to go with gap i think this has room to run victoria . I am going to do my rice owls had and say the visa they have solid sheets i think thats the way to go sonos i see it going to 18 or 20 soon. Draftkings. That does it for that we will be back. I got it all from you im always pushing through i know well make it to the finish line i know youre waiting on the other side im like you ondemand glucose monitoring. Because theyre always on. Another lifechanging technology from abbott. So you dont wait for life. You live it. Happy friday we have a great show lined up for you. Here is what is coming up. Big tech on deck, but watch out for the albatross. And one you might heed the warning of and then, what is the dilleyyo with twilio. It will be broken down into terms you can understand and trading his